[News] [Rival] Bad Week for Microsoft, Worse Future Ahead

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Tough times ahead for Microsoft, analysts predict

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| Like most technology companies, Microsoft Corp. has seen its fortunes dwindle
| over the past year. Through a failed acquisition of beleaguered search
| operator Yahoo! Inc. to the bad public relations image it has tried to shake
| off through a much-ballyhooed advertising campaign with Jerry Seinfeld,
| Microsoft’s stock has dropped almost 30% over the past year, including a 7.8%
| plunge during Wednesday’s trading session on the Nasdaq index to US$21.53.
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| The rumor was originally reported earlier today after a series of emails were
| posted to a MSN Discussion newsgroup, and has since been confirmed by both
| Multiply and Microsoft through a blog post.
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| Despite its legacy of producing some of the very finest strategy games with
| its Age of Empire and Age of Mythology series, Microsoft decided that it
| would be financially disadvantageous to continue to operate the wholly-owned
| Ensemble Studios.
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| MSN Music’s EULA is a case in point. When active, MSN Music's webpage touted
| that customers could “choose their device and know its going to work”.
|
| But when customers went to purchase songs, they were shown legalese that
| stated the download service and the content provided were sold without
| warrantee. In other words, Microsoft doesn't promise you that the service or
| the music will work, or that you will always have access to music you bought.
| The flashy advertising promised your music, your way, but the fine print
| said, our way or the highway.
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| The red rings of death issue simply refuses to go away for Microsoft, and no
| matter how much it reduces the cost and extends the warranty one simple
| question remains: will the Xbox 360 ever be fit for purpose?
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